- Sensex Nifty stock market benchmarks ended lower for a second consecutive session on Tuesday, with the Sensex falling 243 points to 72,529 and the Nifty 50 closing at 22,716.
- High crude oil prices, rising global bond yields and persistent foreign investor selling remained the biggest pressures on Indian stocks, although both benchmarks recovered sharply from their intraday lows.
- IT, banking and broader-market stocks remained under pressure, while Dr Reddy’s, Adani Enterprises, Adani Ports, Kotak Mahindra Bank and Tata Steel were among Tuesday’s Nifty gainers.
The Sensex Nifty stock market ended lower for a second straight session on Tuesday, September 29, as high oil prices, rising global bond yields and continued foreign fund outflows kept investors cautious.
The BSE Sensex closed 242.65 points, or 0.33%, lower at 72,529.07, while the Nifty 50 lost 64.05 points, or 0.28%, to finish at 22,716.20. Both indices, however, recovered significantly from their session lows. The Sensex had fallen as much as 708 points to 72,064 earlier in the day. Pasted text
Reuters reported that Indian equities have now lost nearly 2% this week, extending a seven-week decline of around 6%. The Nifty is also heading toward its weakest September derivatives series in 25 years.
Why Is the Indian Stock Market Falling?
The biggest concern for the Indian stock market remains crude oil. Brent crude traded around $105 per barrel on Tuesday after approaching $108 earlier in the session. Elevated energy prices have become particularly important for India because the country imports roughly 90% of its crude requirements.
Persistently high oil prices could increase India’s import bill, add to inflation and squeeze corporate margins. They have also complicated expectations for domestic interest rates at a time when global borrowing costs are already rising.
The US 10-year Treasury yield climbed above 5.2%, near its highest level in 19 years, adding another headwind for emerging-market equitie
FII Selling Adds Pressure on Sensex and Nifty
Foreign investor outflows have intensified the weakness in Sensex and Nifty. Foreign institutional investors sold a net ₹5,353.22 crore of Indian equities on Monday, their biggest single-day outflow in September. Domestic institutional investors provided some support, purchasing a net ₹5,189.02 crore.
Reuters reported that foreign investors have sold more than $2.17 billion of Indian equities during September, with high oil prices and rising US yields reducing the appeal of Indian assets. The rupee has faced similar pressure. USD/INR briefly crossed 96 on Tuesday before the rupee recovered to close around 95.98 per dollar, helped by dollar selling from state-run banks that traders said was likely on behalf of the Reserve Bank of India.
Sensex Nifty Stock Market: IT and Banking Stocks Drag
Weakness remained broad across the market, with 13 of the 16 major sectors tracked by Reuters ending lower. Small-cap and mid-cap indices declined about 0.8% and 1%, respectively. IT stocks were among the notable laggards. Wipro dropped 2.33%, HCL Technologies lost 1.93% and Titan fell 2.54%. Max Healthcare and Grasim were also among the largest Nifty losers. Pasted text
Insurance stocks remained under pressure, with PB Fintech extending a steep four-session decline. There were pockets of strength. Dr Reddy’s Laboratories gained 2.02%, while Adani Enterprises rose 1.95%, Adani Ports added 1.38%, Kotak Mahindra Bank gained 1.28% and Tata Steel advanced 1.10%.
Nifty 50 Outlook: Can the Index Hold 22,700?
The late-session recovery helped the Nifty 50 close above 22,700, making that region important heading into the next session. The index has already broken below the 23,000 level that previously provided support. The 22,700 area now becomes the immediate level to watch, with a sustained break potentially bringing 22,500 into focus. On the upside, the 22,900-23,000 region could provide resistance following the recent breakdown.
Near-term direction is likely to remain closely tied to crude oil, global bond yields, the US-Iran conflict and foreign investor flows. With September nearing its end, investors will also be watching whether the sharp late-session recovery develops into broader buying or proves temporary.
The Sensex and Nifty are falling amid high crude oil prices, elevated US Treasury yields and persistent FII selling. India’s dependence on imported oil makes rising energy prices particularly important for inflation, the rupee and corporate margins.
The 22,700 region is an immediate area to watch after Tuesday’s close. Below it, 22,500 could come into focus, while 22,900-23,000 is the first major recovery zone.
Higher US Treasury yields can make US assets relatively more attractive, while India’s exposure to expensive crude oil has increased concerns around inflation, the rupee and corporate earnings. Reuters reported foreign investors have sold more than $2.17 billion of Indian equities in September.